develops and estimates a DSGE model with search and matching frictions and shocks to unemployment benefits and matching … benefits may have increased the overall unemployment rate by 1 percentage point. In contrast, matching efficiency changes have …To explain the high and persistent unemployment rate in the U.S. during and after the Great Recession, this effort …

In this paper, we show how time-varying unemployment benefits can generate equilibrium wage dispersion in an economy in … which identical firms post wages and homogeneous workers search for acceptable offers. We allow for matching frictions and … for free entry and exit of vacancies, and we model time-varying unemployment benefits in a simple and natural way. We …

We show that in micro data, as well as in a search and matching model with endogenous separations and rigid wages … are flexible, the standard deviation of unemployment in a model with rigid wages for incumbent workers (only) matches the …

We show that in micro data, as well as in a search and matching model with endogenous separations and rigid wages … are flexible, the standard deviation of unemployment in a model with rigid wages for incumbent workers (only) matches the …